Secretary of Water and Power Nargis Sethi has reportedly blocked the Ministry of Petroleum's move in the Economic Co-ordination Committee (ECC) of the Cabinet to divert 60 MMcfd gas from the Guddu thermal power station (GTPS) to the fertiliser sector, sources told Business Recorder on Wednesday. The short-term plan was withdrawn by Adviser to Prime Minister on Petroleum Dr Asim Hussain after it was vigorously opposed by the Secretary Water and Power.
She was quoted as saying: "I totally reject the Ministry of Petroleum's short-term plan." She added that the hydel power generation would decline in winter and the diversion of gas from the power sector to the fertiliser sector would create difficulties in tackling power shortages. The Secretary of Water and Power also reportedly informed the ECC about his recent visit to the Guddu power plant and production targets given to the plant management in view of winter season and decline in hydel power generation.
Sources said that Secretary Petroleum Waqar Masood reportedly argued that the government had agreed to provide gas to the fertiliser sector and the suspension of gas supply to fertiliser plants was against the agreements which were signed with them. The Ministry of Petroleum presented short- and long-term plans to the ECC for approval regarding allocation of gas to fertiliser plants from dedicated sources and recommended the adoption of the short-term plan immediately because infrastructure development for long-term plan would take some time.
The short term proposal included: (i) 60 MMcfd gas currently being diverted to GTPS from Mari shallow by curtailing supply to fertiliser plants may be retrieved and supplied to Engro Fertiliser (Enven); (ii) since April-2012, GTPS is not consuming its full allocation of 200 MMCFD from Kandhkot gas field resulting in curtailed production from the field. The Kandhkot field can enhance its production to 225 MCFD which would be sufficient to compensate the proposed withdrawal of 60 MMCFD. Accordingly, full 225 MMCFD gas from Kandhkot field may be supplied to GTPS; (iii) in addition, 22 MMcfd additional gas being offered by Mari gas may also be supplied to Engro Fertiliser (Enven) to give it total supply of 82 MMCFD; (iv) Agritech may be supplied 25 MMCFD gas from Makori east field (TAL Block); (v) SNGPL may arrange approximately 45-55 MMCFD gas for the other two fertiliser plants ie Pakarab Fertiliser and Dawood Hercules to operate on rotational basis. This may require one day additional curtailment to industrial sector. The short-term plan was withdrawn by the Petroleum Ministry subsequent to stiff opposition by the Water and Power Ministry and now the long-term plan would be implemented which includes the construction of 1,000-kilometre-long pipeline at an estimated cost of $300-400 million which would take some time.
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